Watch Schwarzenegger's State of the State at 10 a.m. Online

Lame duck Governor Schwarzenegger today will give his last State of the State speech and it won't be sexy. Faced with a $20.7 billion deficit and 12.3% unemployment, he will hopefully lay out plans that will truly put California back on the right track.

Here's out the San Francisco Chronicle recaps the past 12 months: "The state issued IOUs to vendors and taxpayers; halted construction of thousands of projects for months; furloughed state workers; and saw its credit rating drop to the lowest of any state in the country as lawmakers grappled with closing a $60 billion-plus hole in California's spending plan."

And here's the LA Times version of how Schwarzenegger helped us get to this level: "Schwarzenegger swaggered his way into office on a campaign of tax cutting, which helped bury the state; then he helped dig us out by moderating his stance. Now the governor and Republican lawmakers can serve the state best by carefully targeting their proposed cuts and being open to smart tax increases (such as an oil severance fee and a reversal of last year's generous corporate tax breaks), rather than pushing the budget debate past July yet again in order to gin up a crisis and ramrod policy changes that have more to do with serving special interests than with saving money."

The Governor's plan includes a $500 million job creation initiative, which, yes, includes some tax cuts. This might be one of those "carefully targeted proposed cuts," but some worry it will just deepen the deficit hole.

You can watch Schwarzenegger's speech live at 10 a.m. on his twitter video channel.